But if they were short CALLS going into a crash, how did they get hurt ????????? Just kidding, Vega RULE 1 for a option newbies --- When hedged, a call is a put, and a put is a call.
To tell you the truth, never been short calls into a crash.........but i think ur ET call name has something to do with what could break me. LOL, if a crash did come while short a lot of calls. But i trade both sides of the market, i trade non-directional and directional and i also hedge, and i do limit my risk when i hold positions longer than a day........ So far so good....maby someday i will get into Vega and its trading but for now, im trying to handel what simple shit i do. lOL
Roberk; Will answer a few with your numbers with the letter ''a'' for answers : 7.Certainly can find satisfaction trading derivatives; however not likely many could limit losses in % terms ; of $ 1 million loss on 20 million in 2 years on IBM, long calls in a downtrend